As the year draws to a close, it’s the perfect time to take stock of your financial situation. With a new year approaching and tax season looming, making thoughtful, proactive decisions now can help you end the year with confidence and peace of mind. At Premier Financial, we’re here to guide you through this critical period with key strategies and expert insights. Here are six things you should do to end your year: 

1. Wrap Up Charitable Giving

Charitable donations are a great way to support causes close to your heart while potentially reducing tax liability. Whether you’re writing checks, donating stocks, or using Qualified Charitable Distributions (QCDs) from your retirement accounts, ensure all transactions are completed before year-end. Late processing by nonprofits or financial institutions can mean your gift doesn’t count until next year—so don’t wait until the last minute.

Key Tips:

  • For 2024, individuals can gift up to $18,000 per non-charitable recipient tax-free, increasing to $19,000 in 2025.
  • Those 70½ or older can use QCDs to give directly from IRAs or qualified retirement plans to 501(c)(3) charities without increasing taxable income.

2. Reassess Your Portfolio

End-of-year portfolio rebalancing ensures your investments align with your risk tolerance and financial goals. Over the year, market performance can skew the balance between asset classes like stocks and bonds, potentially exposing you to unintended risks. Premier Financial rebalances portfolios annually to mitigate these risks while maintaining your intended allocation. Be sure to ask your financial advisor how your portfolio should be reassessed.

Why It Matters:

  • For instance, a portfolio intended to have 80% stocks and 20% bonds could shift to 85% stocks due to strong market performance. Rebalancing returns the portfolio to its intended balance, safeguarding against overexposure to volatile asset classes.
  • This systematic approach keeps emotions in check, helping you avoid the common pitfall of “chasing winners” or prematurely selling underperformers.

3. Plan Your Taxes Strategically

Avoiding a hefty tax bill—or penalties—starts with staying on top of your tax liability. Consider reviewing your withholding and estimated tax payments at this stage to ensure they match your expected income. Partner with your financial advisor and tax professional to explore strategies like loss harvesting (if applicable) or prepaying deductible expenses.

Pro Tip: If you’ve had significant changes in income this year, consult your advisor to adjust withholding or make a final estimated payment. Surprises at tax time are no fun!

4. Clarify Cash Flow and Budget Needs

The new year often brings fresh goals and new expenses. Take the time now to evaluate your expected cash needs for 2025. Are there significant life changes ahead, like retirement, a home renovation, or education expenses? A clear picture of your cash flow ensures you’re financially prepared and can minimize the need for last-minute investment withdrawals.

5. Review and Update Estate Plans

An often-overlooked component of financial peace of mind is a solid estate plan. Ensure your will, trust, and financial and healthcare powers of attorney are current. Life events like marriage, divorce, or the birth of a child may necessitate changes. While it can feel daunting, completing these documents is one of the greatest gifts you can leave for your loved ones.

Real-Life Impact: Estate planning isn’t just about assets; it’s about reducing stress for your family during difficult times. Premier Financial has seen firsthand how well-prepared clients can navigate unexpected challenges with minimal disruptions.

6. Reflect and Set Goals

The end of the year is a natural time for reflection and goal-setting. Consider making 2025 the year you take control of your financial future:

  • Resolve to contribute more to retirement accounts.
  • Prioritize paying down high-interest debt.
  • Enhance your financial literacy.

These resolutions can have lasting benefits for your wealth and your overall well-being.

Your Financial Peace of Mind Starts Here

At Premier Financial Group, we understand the importance of careful planning and thoughtful decision-making. Let us help you navigate the complexities of year-end financial planning so you can focus on what matters most: enjoying the holiday season and looking forward to a prosperous new year.

Contact us today to schedule your year-end review. Together, we’ll chart your course for financial peace of mind.